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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 1 to DWSD Contract 6003967, with LGC Global, Inc., for Water Main Repairs (WS-719); by adding funding in the amount of $750,000.00, for a new amended contract amount not-to-exceed $29,688,000.00 and extending the term by 60 days for a new term expiring 1/29/2025. No changes to scope of work, or contract terms and conditions. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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Agenda of November 20, 2024
Item No. 2024-228
Proposed Amendment No. 1
Contract No.: 6003967 (WS-719)
Contractor: LGC Global, Inc. (DHB, DBB)
Address: 7310 Woodward, Suite 500, Detroit, MI 48202
Current Contract Amount: $28,938,000.00
Proposed Amendment No. 1 Amount: $750,000.00
Proposed New Total Contract Amount: $29,688,000.00
Current Contract Term: 11/30/2021 - 11/29/2024 (3 years)
Proposed Amendment No. 1 Extension: 11/30/2024 - 1/29/2025 (60 days)
Proposed New Contract Term: 11/30/2021 - 1/29/2025
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed Amendment No. 1 to Contract 6003967 (WS-719)
Water Main Repairs (As Needed)
LGC Global, Inc.
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve Amendment No. 1 to DWSD Contract 6003967, with LGC Global, Inc., for Water Main Repairs (WS-719); by adding funding in the amount of $750,000.00, for a new amended contract amount not-to-exceed $29,688,000.00 and extending the term by 60 days for a new term expiring 1/29/2025. No changes to scope of work, or contract terms and conditions. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
During wintertime, the Detroit Water and Sewerage Department (DWSD) experiences a significant increase in the number of water main breaks and leaks in its distribution system, which maintenance finds difficult to repair on a timely basis. This contract’s primary purpose is to provide for emergency / as-needed repair of various sized water mains during critical periods of time to supplement DWSD’s efforts to repair water mains using its own forces. DWSD is the first responder for all water main breaks in the City of Detroit as agreed upon in the Shared Services Agreement between DWSD and the Great Lakes Water Authority (GLWA).
The work primarily consists of repairing water mains on an emergency as-needed basis. It also includes the emergency replacement of hydrants, valves, stop boxes, road gate boxes, and other appurtenances, including excavation and backfilling, snow and ice removal, salting down areas and permanent restoration of the site.
On average, DWSD experiences approximately 1,500 water main breaks annually on a system that is, on average, 95-years old. DWSD Operations intends on repairing approximately 40% of these breaks using internal resources. This contract also provides for restoration of surface improvements impacted by the breaks and repair work, which will significantly shorten the time frame for repairs to streets, sidewalks, driveways, etc.
Amendment No. 1 will ensure that the water main project's implementation has no operational impact. Operations is proposing an adjustment to the existing contract to include additional funding, original bid pricing, and an extension of the project timeline. This modification will allow for thorough planning and execution, ensuring all necessary resources are available and minimizing potential disruptions to our operations. By allocating the appropriate funds and extending the timeline, we can enhance the quality of the work, maintain service continuity, and ultimately deliver a more effective solution for our community.
PROCUREMENT METHOD
This procurement was competitively solicited through a Request for Bids (RFB) per Requisition 486551, which was approved on 3/1/21. The RFB was advertised on the Michigan Inter-Governmental Trade Network (MITN) BidNet website for 30 calendar days (8/17/21 - 9/16/21). MITN published this opportunity to 1,531 companies and 78 firms downloaded the bid package. In addition to posting on MITN, Procurement also sent email notices to approximately 90 firms. Two (2) bids were received. BOWC approved the contract on November 3, 2021.
The Proposed Amendment No. 1 was initiated through requisition #527073 and approved by Budget. The Proposed Amendment No. 1 is adding funds in the amount of $750,000.00 and additional time, for the continuation of services to be performed under this contract.
LGC’s clearances expire on December 6, 2024, and the amended contract document is routing for signatures.
SUMMARY
A. Contract No.: 6003967 (WS-719)
B. Contractor: LGC Global, Inc.
C. Current Contract Amount: $28,938,000.00
D. Proposed Amendment No. 1 Amount: $750,000.00
E. Proposed Total Amended Amount: $29,688,000.00
F. Current Contract Term: 11/30/2021 - 11/29/2024 (3 years)
G. Proposed Amendment No. 1 Term: 11/30/2021 - 01/29/2025 (3 years, 2 months)
H. Funding Source: I&E Funds
I. Fiscal Year (FY) Breakdown: FY 24-25: $750,000.00
J. GL String: 5721-20244-487711-617900-900276-10792-0000-000000 - 100% Water
Per DWSD procurement protocol, no additional approvals are required.